Sutiyoso promises overhaul of parking agency revenue

Sutiyoso promises overhaul of parking agency revenue

JAKARTA (JP): Governor Sutiyoso promised on Monday to make a
significant revision in the parking agency's revenue in the draft
city budget for the 1999/2000 fiscal year.

One of the major changes is the revocation of the initial plan
of the city administration to help subsidize the agency to the
tune of Rp 3.2 billion during the corresponding period, he told
reporters following stern criticisms from the councilors
concerning the subsidy plan.

According to Sutiyoso, he would summon the agency's officials
some time this week to push them to make contributions to the
city revenues.

"I'll insist the agency improves its income as there will no
longer be any subsidy from the city," the governor said.

Sutiyoso also said that during the planned meeting the
agency's officials would also be asked about problems,
particularly those related to the leakages in the parking fee
system.

He, however, did not mention the estimated income of the
agency following the possible revision of the draft, saying that
the city administration would wait on the agency's explanation.

In the initial 1999/2000 draft city budget, the parking agency
was projected to earn Rp 7.8 billion for its usage during that
period but its expenditure was estimated to reach Rp 11 billion.

This projection meant that the agency needed to be subsidized
to the tune of Rp 3.2 billion by the administration.

The projected subsidy then drew criticism from city
councilors, who said that the agency should, rather, become one
of the city's sources of income.

Head of the Indonesian Democratic Party faction Lukman
Mokoginta said the agency should instead make at least a Rp 30
billion contribution to the city revenues.

Assumption

This calculation was based on an assumption of only 10 percent
of the city's total 2 million vehicle owners spending Rp 500 in
parking fees every day throughout the year, he said on Monday.

"My calculation could be far below the real income which
collectible by the agency," Lukman said.

Lukman's interpretation has validity as many car owners here
spend more daily on parking fees than Rp 500.

Head of Commission D for development affairs Ali Wongso Sinaga
said last week that it would not be difficult for the agency to
increase revenues.

"It just needs an improvement in management. The agency is
notorious for its poor management due to rampant leakages where a
proportion of parking income does not go to the administration
but into 'personal pockets'," he said.

Sinaga said the agency imposed the parking levy only at 361
points in off-street parking areas while the 1988 governor's
decree on parking lots imposed the levy on 653 indicated
locations.

"It means the agency is taking a levy from the remaining 292
parking lots but doesn't pay this to the administration," he
said. (ind)